For this season, it is better to accept whatever the result is because Manchester City has also been eliminated from the UCL and for the Premier League title it is also certain that they will not be able to compete for it, what can be done until the end of the season is just to make sure they stay in the top 4 or can go up again to get UCL ticket next season.
Competitions that are still being followed besides the Premier League are only the FA Cup and the Club World Cup so Manchester City can focus on both if they want to bring home the championship trophy, I sure next season they will be able to get back on track and can perform like the previous season.
I agree that Manchester City season is not going as well as they wanted because they got eliminated from Champions League and it is unlikely they will win Premier League title. Now it is best to accept how things are and focus on finishing in top four so they can play in the Champions League again next season. Since winning Premier League title is no longer possible Manchester City can focus on FA Cup and Club World Cup which they still have chance to win. Winning one or both of these competitions would be nice prize and would help boost team spirits. As you said next season Manchester City will probably come back stronger and play better.
I would say that Manchester City should now try to stabilize their squad. It is not certain whether Manchester city will be able to win the FA Cup. Personally, I think that it will not be possible for city to win the fa cup. Because Manchester city's overall performance is still very irregular.
City's main target in the Premier League is to qualify for the champions league from the top four of the table. Manchester City has lost two of its last five matches. If Manchester city cannot stabilize their performance, then it will not be possible for City to stay in the top four of the table. Chelsea and newcastle are also fighting for fourth place in the table.